AGRICULTURAL RECEIPTS AS DEBT SECURITIES IN AGRIBUSINESS: THE ACCOUNTING ASPECT
Abstract
The paper examines the economic relationships and transactions between creditors and debtors in agribusiness. Agriculture is a major sector of the economy, which depends on the volume of funds invested in its development. Agricultural enterprises are experiencing a shortage of working capital. This affects the timeliness of payments, level of financial stability and solvency of agricultural enterprises. The situation with financial provision of agricultural enterprises is complex. Need to find new sources of financing their activities.
The problematic issue which requires research and development of practical approaches is the organization and methodology of agricultural receipts. This determines the relevance of the research topic in modern conditions of development of agribusiness in Ukraine.
A new tool for solving the problems of lending to farmers is agricultural receipt. Despite the high cost of lending to the classic instruments, it is proposed to use agricultural receipts as debt securities. Agricultural receipts is a type of debt instruments to attract credit resources. Depending on the type of obligations they are divided into commodity and financial.
Agricultural receipts are issued to persons owning land for agricultural purposes or having the right to use this site. The principal parties to the legal relationships are farmers, distributors and traders.
Revealed the problematic issues of determining the essence of agrarian receipts, and propose practical approaches to improve their accounting in agribusiness. The main factor that hinders the attraction of credit resources - lack of accounting and taxation of transactions with agricultural receipts. This increases the risk of penalties by the fiscal authorities. In addition, there are conflicts in the procedure of collecting crop at the expense of agricultural receipts, the procedure of forced repossession of property of the debtor in enforcement proceedings. This discourages debtors and creditors can use this kind of credit instrument as an agricultural receipt.
Agrarian Receipt: is a document of the established form with the relevant details, certifying the loan relationship; provides for the obligation of the person who issued the debt security (agricultural debtor) to pay the funds within a specified period, to transfer the products in accordance with the obligation; 3) there is an opportunity to transfer the rights to third parties. The advantages of using agrarian receipts in agribusiness are: simultaneous submission of a new agrarian receipt in the State Register of encumbrances of movable property and the Register of agrarian receipts; publicity and availability of information on fulfillment of obligations on agricultural receipts; the existence of a simplified mechanism to guarantee the debtor's obligations; public oversight of agrarian receipt obligations.
The conducted researches confirm that in the conditions of unstable economic situation, deficit of own sources for replenishment of working capital before domestic agricultural producers the problem of diversification of sources of financing is urgent.
Among other things, there are a number of problems, including the lack of methodological recommendations for displaying information on agricultural receipts in the accounting system of agricultural enterprises. The solution of these problems will allow to form and receive reliable information on attraction of additional financial resources, which are necessary for the identification and use of reserves of growth of competitiveness of agricultural products, in particular, increase of efficiency of activity of the enterprises of agribusiness as a whole.
